Wall Street Giants Lost Hope in This Altcoin! Short Positions Hit Record Highs!

The changes initiated by U.S. President Donald Trump in customs duty rates have greatly shaken cryptocurrencies. Bitcoin (BTC) and altcoins experienced significant declines, while the price of Ethereum (ETH) dropped by approximately 37% in a short period of three days following Trump's tax announcements.

While the price of Ethereum is still in a downward trend, ETH short positions have increased by 500% since last November, reaching an all-time high.

According to The Kobeissi Letter, short positions in Ethereum reached a new all-time high last week, increasing by 40% and by 500% since last November.

Wall Street Giants Expect More Decline in Ethereum!

This aggressive increase in short positions indicates growing concerns about the short-term stability of Ethereum, and analysts suggest that this increase is due to ETH price facing strong selling pressure in recent weeks.

Analysts point out that investors have a very negative sentiment towards Ethereum, and they attribute the short positions to hedge funds.

It is noted that hedge funds are heavily betting on Ethereum's price falling further and aggressively opening short positions at this point, while this increase may increase volatility in ETH price.

Analysts also noted that historically this is the biggest bet of Wall Street hedge funds on the world's largest altcoin's biggest drop.

What Is the Critical Level for ETH?

As uncertainty about the Ethereum price increases, crypto analyst Ali Martinez said that $2,600 is a critical support level for ETH.

An analyst argued that if the $2,600 level is maintained, Ethereum could gather enough momentum for a significant recovery and the price could potentially go to $3,000 or even $4,000.

Another analyst said that opening such extreme short positions is a sign that Ethereum could experience a major short squeeze. This situation occurs when investors who have opened short positions are forced to close their positions and buy back ETH, which sharply raises prices.

Ethereum is currently struggling with a strong downward trend, and aggressively increasing short positions are seen as a sign of further volatility. At this point, market analysts generally point out that ETH may face both market sensitivity and technical challenges unless there is a positive development for Ethereum.